The Hongkong market started the first trading Monday of the year on an optimistic note with stocks gapping up as much as 350 points up. The index consolidated lower to a low of 15,128 but still continued its rally to close near the highs at 15,563 or 520.5 points up.  This makes it a 1000-point [...]

1. Chalco (2600 HK) – First day of breakout and strong volume
Is it really easy to buy and hold?  For those who have listened and executed my published recommendation last Oct 31, 2008 where I specifically told readers to expect a 100% return trade, congratulations. You are now up 50% for about a month and [...]

I have noted that the mother of bear market rallies is what we are experiencing right now and the patient buy-and-hold investor are up 100% or more already if they bought a couple of weeks or a month ago.  Traders are earning 15-20% gains in a day.  How do we participate?  The strategy is always [...]

Orient Overseas (316 HK)
 
This shipping stock has been consolidating in a tight range between 11.75 and 12.50 for the past 7 days after falling from 13.25 last two weeks ago. With the change in sentiment and the increase in volume as well as the divergences seen in MACD and RSI, this stock can finally wake [...]

 
2343 HK (Pacific Basin)

Support: 2.90
Resistance: 3.60/3.95
Preferred Entry: 3.00 or lower
 

Stock is in a consolidation mode in a range between 2.90 to 3.20. Volume continues to be strong. Buy on point of breakout (3.21) or anticipate the move by buying near support levels (3.00 below).
 

The daily chart is anticipating a breakout with a target of [...]

The US market has rallied 4 days in a row starting last Friday (November 21). We have never witnessed something like this ever since 1933 (Great Depression Era). As I have argued in my HK market outlook ever since Friday, we are in a strong bear market rally, perhaps the mother of all bear market [...]

Sinoma Cement (HK:1893)

This stock is a direct beneficiary of the China stimulus plan. I am just showing the intraday chart pattern as most stocks are only suitable for short term trading. Nevertheless, the daily chart pattern of the stock shows a bounce from its 50% Fibonacci retracement. As the Hang Seng Index looks to bounce [...]

My apologies for not having written the newsletter last Friday. I was actually too busy buying stocks and going long currencies against JPY. As soon as markets in Asia started going higher by six candle sticks 30 minutes before the afternoon close (around 12 noon Phil time) with almost all currencies going towards the same [...]

I am showing below the intraday and daily charts of a stock that could have resulted, in hindsight, of gains of more than 50% in a single day. But it would not have been easy to pull the trigger here mainly because the HK market’s volatility can have huge draw downs. This is the reason [...]

The HK market’s 6 month daily chart shows that the Chinese plan to infuse the market with $568 billion fiscal stimulus package aimed at railways and airports sparked a huge rally (20-50% gains for the stocks related to cement, railways and infrastructure!). On Monday, the market opened at 15,033, made a high of 15,147.96 and [...]